Success Isn't Free

Success Has a Price

Why are some people successful while most struggle? Are they lucky? Are they just at the right place at the right time? Is it because they are highly educated? Or, is it because they just learn how to perform better and are faithful to their practices?

Ben Feldman was arguably the best salesman ever. He was a High School dropout. Scratch higher education as a key requirement to success. That said, most successful people are subject matter experts. Product and industry knowledge are essential to succeed.

No matter how it looks, successful people are neither lucky nor just at the right place at the right time. Winners make their own luck. They are at the right place at the right time because of careful planning and execution. No surprises for peak performers. They knew the results going in.

This is a good time to take a step back and invest some time and thought into your business, your career and your life. What I do is go to a quiet place and reflect on what happened and decide what I need to do in the future. Not a complicated exercise. It’s not perfect, but without a serious personal assessment, how can you improve your outcomes?

I offer seven tips to tune up your business, your career and your life. There are more, but these seven are a good start.

Become a Peak Performer in 2011

Seven tips to tune-up your business, career and life in 2011

1. Renew your vows
2. Confirm your destination
3. Analyze results
4. Create a plan, welcome change
5. Optimize your time
6. Measure outcomes, make adjustments
7. Work relentlessly

Renew Your Vows

You were sincere and focused when you started on your journey. If you are like most people you have not reached your goals. That’s normal. Things, life seem to get in the way of the best laid plans. The good news is that you have made progress. The future is still ahead. Put yesterday behind, clean the slate, renew your commitments and focus like a laser beam on your tomorrows.

Confirm Your Destination

Are your goals defined well enough that you will know success when you get there? Is the desired outcome clear? Is it happiness? Is it personal freedom? Is it financial freedom? Or, is it all of the above and more? What is your end game? Is it written? If not, write it down. Keep it handy. Look at it often. Never lose track of your destination. If you do you will be unable to get there.

Analyze Results

How have things been going lately? What happened as a result of your efforts in the last twelve month? Can you identify things that worked? What didn’t work? Where did you succeed and where did you fail? Going forward, it is important to look back and draw conclusions. This exercise will result in the obvious. Continue to do what works, just do them better. Stop what doesn’t work.

Create a Plan…Welcome Change

Create a plan for success in 2011. Build on past successes. Review emerging strategies, tactics and tools to get ahead and stay ahead of your competition. Everything changes all of the time. If you don’t welcome change you will have no hope to grow or to even maintain your current status. Put it in writing. Read it often. Make changes when necessary. Your plan is a living document. Your plan is your blueprint for your success. It is your road map to the future.

Optimize Your Time

Is time optimization hard to do? Not really. If you do not prioritize your tasks and manage your time, you will have no chance to be a peak performer. Time is a valuable asset, possible the most valuable asset you have. Squandered time is lost forever. It can’t be recovered. How do you spend your time? Do you put aside important things to do menial, easy stuff? If so, you are impairing your ability to perform. Keep a diary for a few days. You will quickly see where you can improve your time management.

Measure Outcomes, Make Adjustments

Don’t wait until the end of the year to figure out the shortcomings of your efforts. Be accountable to yourself. Know your milestones. Review them often. If you miss a goal, figure out why not and fix it. It might be a simple as calling a lost customer and asking “why?” The answer might be as simple as doing more. If you optimized your time you can use the time saved for more activities. If things are going wrong figure it out and adjust.

Work Relentlessly

More than anything you can do to become a peak performer in 2011 is to work relentlessly toward your goals. This is by far the most essential tip I can offer. The truth is as simple as “more sales calls equal more sales”. If you do your best at all times you will notch a lot of victories and eclipse your competition. Those that have gone before us are a testimony to this truth.

2011’s Peak Performers

I would say good luck, but there is no luck involved. You make your own luck. You will be in the right place at the right time because you planned it.

The Best Salesman Ever

I recently came across an old issue of Selling Magazine (June 1994). The featured story was about Ben Feldman, arguably the greatest salesman that ever lived. The article was titled “The Best Salesman Ever”. Ben died in 1993, but left behind an incredible legacy. He sold over $1.6 billion dollars of life insurance in his career. He represented New York Life. His annual sales were greater than the sales of many life insurance companies. After he learned his products and the essentials of the sales profession he ramped up a fabulous career and made over $1 million per year. Not bad for a son of Russian immigrants from rural Ohio.

All Things are Essentially Equal

The beauty of the sales profession is that Ben Feldman or anyone else has the same opportunity to rise to the top. There is nothing standing in the way of success that can’t be learned, mastered and conquered. Everyone’s sales career starts out about the same, little revenue with unlimited potential. Where it ends up is totally the responsibility of each individual salesperson. Ben Feldman got in the game, learned how to play and was driven to win, posting results unheard of in his industry. He was referred to as the “Babe Ruth” of insurance sales.

Get Your Game On

Another year is coming to an end. How did you do? My challenge to you is to reflect on your performance and figure out what worked and what didn’t. Make a list. Improve what worked and eliminate what did not work. Do some things different. Ask around, seek out top performers. Get motivated, get moving and dedicate yourself to making 2011 your best ever year in sales and income. Ben Feldman did it and so can you.

Buying and Selling on Price

The lowest price is not always the best deal. I suggest it is rarely a good deal for buyers or sellers.

A Good Deal?
When all things are equal, buying on price is a good decision. The problem I have with price shopping is determining if the playing field is level. Are all things equal? Is the lowest price item an apple for apple comparable product to the higher priced product? I guess if you are buying a brand named product in a box with a model number the low price wins. In that case, I have concern about the vendor who makes the least money on the sale. Will they be around to stand behind my purchase?

If I am selling on price, particularly if I am the lowest price, I am probably not making enough money to justify making the sale. I might be able to get away with it once in a while, but in the long run, consistently being the lowest bidder is a threat to my company and my livelihood.

My Experiences
I have had to deal with pricing pressures over my career.

Start with the premise that a sale or purchase is made up by a blend of three factors, price, quality and service. If one of the factors moves, it causes the others to change. If I can’t get my price, how can I maintain top quality and responsive services? They cost money. This is just reality. If I give low prices and lousy service the customer will quit. Likewise if the quality is low, the low price doesn’t matter to the customer.

When I was much younger and dumber, I sold prepared culture media to local hospitals. These biological agar dishes were fragile, sterile and had a shelf life of a few weeks. If a shipment were broken, contaminated or out of date, I actually reminded the complaining Microbiologists that they got a great price (the consolation). In other words, they got what they paid for. Needless to say, I quickly stopped using that line.

When I sold computer systems to doctors, many would howl about the price. I held my ground, noting that someone had a Mercedes Benz (insert your favorite luxury car name) in the parking lot. “I think it’s you!” The message was clear. “If you want quality you have to pay for it and you obviously appreciate quality.”

Recently, when I sold computer consulting and programming services, I ran into the same objection. My hourly fee was $150 per hour. They would object.
“My last consultant only charged $85 per hour.”
“Where is he and why am I here?”
The answer was simple; the discount consultant took more hours to work on projects and didn’t deliver satisfactory results. $85 per hour was a bad deal for the customer.

Value is the Key
Real selling and buying is a blend of value. The seller needs to make money to provide value and the buyer is almost always disappointed at some level after the discounted sale. The best transactions are always based on a fair exchange of value.

Why Daddy?

Kids Can Sell

Kids are natural at selling. When a child wants or does not want something to happen they can be formidable opposition that sometimes only gets subdued by threats. If you are a parent or close to parents raising children you know exactly what I’m talking about.

Kids dig in on topics that matter to them. They become highly motivated, extremely focused and ready to give you a run for your money. They don’t take no for an answer and will pepper you with endless questions until you give in or go away.

My daughter Amy was the queen of getting her way. She never stopped asking questions and never gave up. She was a relentless toddler and child. More often than not her first response to anything I asked her to do was “Why Daddy?”

Game On

Here is how a typical exchange would go:

Me: “Amy, please get your pajamas on.”
Amy: “Why Daddy?”
Me: “Because you have to go to bed.”
Amy: “Why Daddy?”
Me: “Because you have to get to sleep.”
Amy: “Why Daddy?”
Me: “Because you have to get up and go to school.”
Amy: “Why Daddy?”

You get my point. No matter what the topic, night or day, if Amy had a vested interest in something, I was immediately engaged, like it or not.

Act Like A Child

This brings me to adults who sell for a living.

I know a lot of salespeople who would do a lot better and make more money if they would ask more questions and not concede to prospects too early in the sales process.

Asking probing questions is a fundamental skill of a consultative salesperson. If you are trying to fill a need, solve a problem or fix something, you have to know what the problem is. You get there by asking questions and listening for answers.

If you have a good solution, present it and are rejected, you can say thanks and leave or you can start asking more questions. Why? Why not? I don’t understand? Can I clarify a point? etc. You owe it to yourself to hang in with your prospect, probe for answers and keep probing until you get what you want or are asked to leave.

Software is the Answer

Thirty or so years ago the emergence of the micro processor and the disc operating system brought computing to small business and to ordinary people. I remember my first IBM-PC like it was yesterday. Computers and software applications have come a long way since then. I now have more computing power in my Blackberry than it took to send Neil Armstrong to the moon.
For three decades I made a career of selling computer systems and application software to small businesses. It was a great career.

Software is Good Business

The way I figure it, I sold well over one thousand systems in a thirty year run. The reason businesses gave me money was that I showed them how buying software from me would solve business problems for them. Buy software from me (the computer hardware came with it most of the time) and solve a business problem, gain efficiency and save money. Nice.

An Easy Sale...Every Time

In the early 80’s I sold a lot of systems because accounting software modules were integrated. It went down something like this: The scene is a business office. A handful of accountants were at their desks with columnar pads, adding machines, desk lamps, pocket protectors, pencil sharpeners and green shaded visors on their heads. Their job was doing the “books”. The process was labor intense and mistake prone (thus the pencils).

Me: “If you write checks using my software they will print on a computer printer.”
Her: “Huh…what about my typewriter? I just got a case of ribbons.”
Me: “And, the check will automatically post to the General Ledger.”
Her: “What? Get out. You are kidding. No way. Louise, come over here and see this. You won’t believe it. What will they think of next? How can we get this? When can we have it?”

And so I did my part to extinguish the use of typewriters, columnar pads, desk lamps, shaded visors, and pocket protectors and made a great living while doing so.

No Looking Back

Software revolutionized the accounting profession and a lot of others. There was some thought in 1999 that we would have to go back to the old manual systems because of the millennium and two digit dates, but we made it through that scare and haven't looked back since. Those of you that know me will remember that I stocked up on food, water, wood and ammo. I just wasn’t sure. I didn’t want to take the chance that the power grid or other essential systems would fail. Anyway, except for the ammo, everything got consumed eventually. It’s really hard to use up bullets and shells.

What Did We Miss?

You would think that after all of these years and all of the applications that were developed that the software revolution would slow down. After all, every possible software application has been created and deployed. There is nothing left to automate. Not true. Not even close to being true.

And Then Came the Clouds

A while ago we added the Internet to the mix (thanks Al) and a whole new world of software applications from way up there in the clouds arrived to keep solving problems for us and to continue to make us happier.

Buy Software - Save Money

For instance, I have a friend who has software that can monitor your UPS and Federal Express bill to find out when and how you were overcharged. He saves his customers about 5% on their bill every week. There is some real tangible value in that code.

Buy Software - Save Time (Which is Also Money)

Another associate provides software as a service that scans the Internet for information on topics of great interest to you, packages it up in concise e-mail format and delivers it to you at pre-determined intervals. This software does a better job of searching for relevant content than you can and, of course, then you don’t have to spend your time searching endlessly for haystack needles of information in the big old world wide web. That software delivers value.

Problem Fixer

What business problem is bothering you? Is there some process that just isn’t working right at your place? If so, I can say with certainty that there is some software out there that will solve your problem(s).

Software is Good For You

I know that we’re in a recession. I know that you aren’t in a spending mood, but consider my proposition. A strategic software purchase can make things better, shrink processes and deliver efficiencies. Now as much as ever, software can make your organization stronger and better equipped to beat back the effects of the current economic climate. Think it over.

Software is the Answer.

Closing The Revenue Gap

Consultants, particularly independent ones, face the same issues a start-up Entrepreneur has to deal with. They get work, they bill their client and at some point the engagement ends. They then have to hustle up another job. Sometimes it takes a while to get billable again. The gap in revenue is a scary and dangerous place to be.

Apply Pressure

I am against start-ups hiring salespeople too soon for a bunch of reasons already noted. The answer to keeping the revenue gap closed is for small business owners and consultants to continue prospecting for business at all times, including, and most importantly, during the billable periods.

Get Control

It takes discipline, great time management skills and a priority system to juggle your week, wear numerous hats and keep a sales pipeline full.

Be Faithful

My suggestion is to reserve some time to hunt for new business each week. Do it without fail and you will keep your income wheel turning. Specifically, make a commitment to do a number of business development activities each week, without fail.

Try Everything

Try writing a newsletter, writing a blog, sending out some mail, making some phone calls, attend relevant networking events, work a trade show, host a lunch and learn or even host a weekly Webinar. And, always speak to groups whenever possible.

Gap Closed

Once you get this system tuned up, you can make adjustments, depending on what is working for you. The most important thing is to spend some time each week on business development. If you faithfully continue prospecting, the next job will start when the last one ends.

Good Hunting!

Start-Ups: Don't Hire Salespeople

Salespeople are the heart and soul of business. No sales calls = no sales. It’s hard to imagine a business growing and thriving without a competent sales force. More salespeople, making more sales calls, landing more orders is a formula for success. That is unless you are an Entrepreneur getting a start-up business off the ground.

Wait

My advice is to wait until your company is off the ground and running before entertaining the idea of building a sales force. There are a handful of reasons to be careful beefing up your sales department.

They Don’t Understand

First of all, most businesses are founded on a great idea. The great business idea is typically a byproduct of the founder’s subject matter expertise. Most start-ups know something that others don’t. They solve problems and are then paid to deliver their products or services. Over the last few years, I have worked with dozens and dozens of new businesses and most of the founders, owners, entrepreneurs do not understand the ins and outs of employing salespeople. They shouldn’t hire salespeople because they don’t know what they are getting into.

Risk

The risk facing a company when hiring salespeople early in the life of the enterprise is great. First of all, like other employees, they want to be paid. Unlike other employees, there is no guarantee that a salesperson will deliver a return on investment. An investment in recruiting, hiring, and training, equipping and managing a salesperson is a one that can backfire on a start-up company. The setback in money, time and lost opportunity could be fatal.

Disruption

When a salesperson is hired the first thing an entrepreneur will find out (the hard way) is that salespeople are needy. They will make work for their bosses. That’s just how it is. So, instead of relieving some of the workload burden they become extra burden on their time and checkbook. Again, not only will the entrepreneur be answering questions, asking questions, helping with proposals and running sales meeting with their new salesperson, i.e. doing it all themselves anyway, but there is still no guarantee that he or she will sell their products or services anytime soon, if at all.

Message

Unless a salesperson is schooled in the subject matter being sold, it is unlikely that they will be able to correctly tell the story or the value proposition. They won’t likely be able to answer questions and could probable get some facts distorted. Again a start-up business doesn’t need problems like this.

Later Than Sooner

Make some sales, get some traction, get off the ground and then hire salespeople.